ITC Availment

ITC / Input 230 views 2 replies

Gangeshwar

proprietor

136 Points Joined December 2017

Dear All,

In one of our real estate companies, we have been charging ITC on duplex and flats sold @ 5% but we are setting off the liability against brought forward ITC. we are not claiming any fresh ITC but adjusting against the past ITC brought forward. Now the query is since we are charging GST @ 5%, can this brought forward ITC be claimed or NO ITC be claimed against the liability.

Another query is now during the current year itself, we will be selling some more flats and shopping complexes (another project but under the same company), can we charge GST @ 12% and claim all ITC. Is this switch over from 5% to 12% permissible during the year.

thanks in advance.

Replies (2)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9610 Points Joined December 2011

It is possible to have unclaimed input credit. Due to tax on purchases being higher than tax on sale. In such a case, you are allowed to carry forward or claim a refund.

If tax on inputs > tax on output –> carry forward input tax or claim refund

If tax on output > tax on inputs –> pay balance

CA Altamush Zafar

GST Consultant

15986 Points Joined March 2013

This requires a long answer.
But as far as first query is concerned you cannot utilise itc. It will be deemed that you haven't paid the tax. You will have to pay tax in cash along with interest